I received some stock as gift from a relative, and have a question about determining how to enter my cost basis and sell transaction correctly into Turbo Tax.The gifter's basis was $4/share, and the fair market value (or FMV, calculated by taking the average of the low and high prices) on the day I received the shares was $2/share. I sold the stock a few days after I received it at $2.50/share. As I understand from Pub. 551 (and searching/reading other posts on this board), my cost basis is the FMV on the day I received it (i.e. $2), but I have neither a gain nor a loss on the sale because I sold the stock between the gifter's cost basis (original purchase price) and my cost basis (FMV on the day of the gift). So, now my question about entering this data into Turbo Tax. If it matters, I plan to file my return electronically. How do I enter the above transaction(s) in Turbo Tax so that it can compute correctly that there was no net gain or loss? If I simply enter my cost basis ($2.00) and the net sale proceeds ($2.50), it gives me a short-term gain of $0.50/share, just like it would for a normal buy/sell transaction pair, and this (adversely) affects my tax liability. Unfortunately, there doesn't seem to be an option to indicate that this was a gifted stock and hence requires a different gain/loss computation. The help section does briefly describe the no gain or loss scenario, but does not provide any directions about entering this information in the form/interview.Thanks in advance for all the help. I apologize if this is not an appropriate place for posting this, but I was unable to find a board devoted to Turbo Tax issues.-S
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